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GAO-21-311R 1 (2021-03-01)

handle is hein.gao/gaobaecnj0001 and id is 1 raw text is: U.S. GOVERNMENT ACCOUNTABILITY OFFICE G A O A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Washington, DC 20548 March 1, 2021 The Honorable J. Luis Correa Chairman Subcommittee on Oversight, Management, and Accountability Committee on Homeland Security House of Representatives Federal Protective Service: Projected Outcomes of the New Fee Structure on Tenant Agencies' Costs Dear Mr. Chairman: The Federal Protective Service (FPS) within the Department of Homeland Security (DHS) is responsible for protecting more than 9,000 federal buildings and ensuring the safety of the people within them-federal employees, contractors, and visitors, including members of the public. FPS is completely funded by the fees it charges agencies for its services-such as the basic security fee it charges to agencies for buildings under its protection-and does not receive a direct appropriation. We reported in June 2008 and May 2011 that FPS had not analyzed its basic security fee structure and did not know the extent to which the structure resulted in some facilities subsidizing others.1 Since that time, FPS took steps to improve its oversight of its basic security fee and in fiscal year 2020 implemented fundamental changes to the fee structure.2 In response to FPS's fiscal year 2020 change, you asked us to provide information on the new fee structure. This report describes: the change FPS made in fiscal year 2020 to its basic security fee structure, and how this change affects tenant agencies' costs.3 To describe the change to the fee structure, we reviewed FPS documentation, such as information on how the fee is calculated. We also interviewed FPS officials with knowledge of the change and how FPS implemented it to date. To describe how the new fee structure affects tenant agencies' costs, we compared FPS data on fiscal year 2019 basic security fees to the average of 3 years of basic security fees: actual fees in fiscal year 2020 and the anticipated fees 1 We found that because the basic security fee did not account for the risk faced by specific buildings or the level of service provided, some buildings may not have paid amounts commensurate with actual costs. GAO, Homeland Security: The Federal Protective Service Faces Several Challenges that Hamper Its Ability to Protect Federal Facilities, GAO-08-683 (Washington, D.C.: June 11, 2008) and GAO, Budget Issues: Better Fee Design Would Improve Federal Protective Service's and Federal Agencies' Planning and Budgeting for Security, GAO-11-492 (Washington, D.C.: May 20, 2011). 2 In April 2014, FPS finalized its Activity Based Cost Model Independent Verification and Validation Report that, along with FPS's fiscal year 2015 congressional budget justification, outlined the purpose and rate-setting procedures for FPS fees and demonstrated FPS's ability to conduct regular, substantive fee reviews. DHS also conducts biennial reviews of its fee-based programs, including a review of the basic security fee administered by FPS. 3 We did not assess whether the change in how FPS calculates the basic security fee better aligns charges with actual costs, as the change is too recent to conclusively reach such a determination. According to FPS officials, FPS plans to reassess the model for fiscal year 2023. GAO-21-311 R FPS Basic Security Fees Page 1

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